In the spotlight…serviced apartments

A
s a savvy EA we know you’re already well-versed in the many benefits of a serviced apartment. But, if you still need some convincing, Cora Lydon has the facts and figures.

35-45sqm…that’s the average size of one global brand’s studio apartments. In comparison, the average size of a room in a four or five star hotel is just 32 – 34sqm. And, if you book a one bed apartment, you can nearly double the space available compared to the average hotel room. You really do get more space for your money – crucial for longer stays for your delegates.

20 per cent…is the average saving your company can make by booking a serviced apartment over a hotel, according to the Association of Serviced Apartment Providers (ASAP) when comparing like for like standards of the two.

Longer stays pay less tax…although this rule is not just relevant to serviced apartments it’s where it really comes into its own. Once you’ve placed someone in a serviced apartment for 28 days, subsequent night rates are lower as goods and services tax drops to just four per cent, so the stay will be cheaper. We wouldn’t fancy spending more than a night or two in a hotel but longer stays in serviced apartments can be comfortable and affordable.

826,759…is the estimated number of serviced apartments globally. Whether you’re spoilt for choice in an industry hot-spot (like Selangor, Malaysia, with more than 32,500 properties in the pipeline) or looking for a rental in Africa (which accounts for just 1.15 per cent of the global serviced apartments market) you’re sure to find something that matches up to your needs.

Cost comparisons…show the price of a club sandwich from a room service menu from a hotel in Zurich equal that of ordering a UK online shop for the boss’s serviced apartment to last them the whole day, if not longer – according to TripAdvisor’s 2015 annual cost comparison report. Similarly, hotel dry cleaning services were equally pricey when you consider a serviced apartment often comes with its own washer/dryer or at the very least access to a laundry area.

81 per cent…was the full year occupancy for the UK serviced apartment sector in 2016, according to ASAP statistics.

One in four…is the market share in Australia when it comes to serviced apartments, where this approach continues to dominate the accommodation industry. In comparison, UK market share is around six to seven per cent, up to 12 per cent in the US and around the same as America in Asia.

Six to 12…is the number of reviews the average traveller will read before making their booking decision, according to SocialMediaToday. So, well worth researching before booking the boss’s next trip if you’re going to try out a new provider.

A local travel experience…is the reason 55 per cent of Chinese travellers opt for non-hotel alternatives, according to Agoda’s Travel & Tech Study. Indonesians, Malaysians and Filipinos do so to accommodate larger groups, while Singaporeans, Thais and Australians believe it to be cheaper than a hotel room.

25 per cent… is how much demand has grown for serviced apartments in the Asia-Pacific region. This growth is believed to be due to employers attempting to plug skills gaps by offering short-term contracts and using the benefits of serviced apartments.

3 per cent… is how much Deloitte projects nights in a serviced apartment room will grow by per year in Australia over the next few years – and it’s a figure 1.4 per cent greater than the forecasted supply growth. In Australia demand outstrips supply – partly due to the high cost of land in the country’s central business district areas.

Scotland and the Midlands… are highlighted by Savills and ASAP as future UK growth hotspots for serviced apartments in the next two years – with supply growing by 21.1 per cent and 13.4 per cent each year respectively.

Free WiFi… is what the boss will really appreciate the most, if the results of a survey from the Global Business Travel Association are to be believed. Get in your manager’s good books by negotiating a free WiFi package with your apartment.

Two…that’s how many dedicated GoNative staff PwC took on at the end of 2015 to control all of the company’s serviced apartments bookings. In the last decade alone the number of people being sent overseas for work assignments has grown by 25 per cent and PwC predicts a further 50 per cent growth by 2020.